Loading...
•
Mar 31, 2023
Carvana Q1 2023 Earnings Report
Carvana's Q1 2023 performance reflected progress on its profitability plan, achieving best-ever first-quarter GPU and Adjusted EBITDA margins, and completing Q2 SG&A reduction goals early.
Key Takeaways
Carvana's Q1 2023 results showed a 25% decrease in revenue to $2.606 billion and a 25% decrease in retail units sold to 79,240. However, the company achieved a 14% increase in total gross profit to $341 million and significant improvements in GPU and Adjusted EBITDA margins. The company is on track to achieve positive Adjusted EBITDA in Q2 2023.
Achieved company-best first quarter GPU and Adjusted EBITDA margins.
Completed Q2 SG&A reduction goal one quarter early.
Retail units sold totaled 79,240, a decrease of 25%.
Revenue totaled $2.606 billion, a decrease of 25%.
Forward Guidance
Carvana expects a reduction in retail units sold in Q2 2023 compared to Q1 2023. They anticipate Non-GAAP Total GPU above $5,000, with Non-GAAP Retail GPU above $2,000, Non-GAAP Wholesale GPU above $1,000, and Non-GAAP Other GPU above $2,000. Non-GAAP SG&A expense is expected to be similar to Q1, and the company expects to generate positive Adjusted EBITDA in Q2 2023.
Positive Outlook
- Expect >$5,000 Non-GAAP Total GPU in Q2 2023.
- Expect >$2,000 of Non-GAAP Retail GPU in Q2 2023.
- Expect >$1,000 of Non-GAAP Wholesale GPU in Q2 2023.
- Expect >$2,000 Non-GAAP Other GPU in Q2 2023.
- Expect similar Non-GAAP SG&A expense in Q2 compared to Q1.
Challenges Ahead
- Expect a reduction in retail units sold in Q2 2023 compared to Q1 2023.
- Macroeconomic and industry environment continues to be uncertain.
- Continue to normalize our inventory size.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...